(Reuters) - DuPont (DD.N), the world's largest producer of titanium dioxide, expects demand for the pigment in the second half to be stronger than what some titanium ore miners are projecting, partly due to falling inventory levels.
Shares of titanium ore miners fell on Monday after Australia-based Iluka Resources Ltd (ILU.AX) said softer demand and higher inventory of the pigment, used in paints and plastics, are affecting production.
"Recent comments regarding market demand for titanium dioxide in the second half of 2012 are not consistent with DuPont's view and overstate the softness in the pigment industry," said Boo Ching Chong, president of DuPont Titanium Technologies.
Shares of Tronox, which mines titanium ores and also produces the pigments, recouped some of their losses from Monday after the company said sales at most of its mineral sands business remained strong.
The mineral sands business mines titanium ores and zircon, which is used in ceramic tiles.
"Despite shortfalls in zircon sales our total mineral sands sales for 2012 is 4 percent higher than our expectation set at the start of the year," Tronox said in a statement on Tuesday.
The company's shares were up 5 percent at $110 in afternoon trading on Tuesday, making them one of the top gainers on the New York Stock Exchange.
DuPont shares rose 1.3 percent to $48.10. (Reporting by Divya Lad in Bangalore; Editing by Saumyadeb Chakrabarty)
ILU Price at posting:
$8.20 Sentiment: None Disclosure: Held
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